Basic Steps Account Reconciliation

8/2/2019 Basic Steps Account Reconciliation

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Basic Steps in the Process-Print Statement(s) of Account.

-Gather documentation and supplies.-Verify that the prior months ending balance agrees

with the current months beginning balance onthe Statement of Account.

-Verify that prior month errors have been corrected.-Compare supporting documentation to the

Statement of Account and documentdiscrepancies and resolutions.

-Show evidence of reconciliation.-Prepare Summary of Reconciliation.

-Obtain approval from department head.


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Print the Statement(s) of Account

Use the DEFINE

IF5 command.

Input the requested

information

The Statement of

Account will print on

campus overnight

and be delivered the

next business day.

NOTE: Statements are available after the 5th working day of the month.


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Statement of Account Sample


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Gather documentation andsupplies

Pencil and/or pen Straight edge

Paper documentation

Access to Accounting & Purchasing Services (APS)Library on FileNet

Previous months reconciliation


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Verify Statement of Accountsbalances agree

If the

balancesagree, go tonext step.

If balances do not agree,

Use the DEFINE GT1 command.

Find the transaction(s) causing the

discrepancy. Additional transactions

may have been posted to theaccount after the prior month

Statement of Account was printed.

Does prior months ending balance equal the current

months beginning balance?


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Verify previous errors were

corrected

If all

transactionsnoted as errors,problems orexceptions havebeen corrected,go to next step.

If corrections have not been made,

follow up with the individualresponsible for correcting the error.

Document all actions taken in yourfollow up. For example, if you

contact the individual by email,

keep a copy of the email with the

reconciliation documentation.


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This step contains multiple criteria that must be met in

order for the comparison to be complete.For each transaction on the Statement of Account:

Compare documentation to theStatement of Account

Is there documentation?

Was the transaction approved by the department

head or delegated signature authority?

Does the amount AND vendor on the Statementof Account agree to the documentation?

Document discrepancies and resolutions.


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If documentation isavailable for thetransaction, go tonext step.

If not, locate the missing documentation byfinding the source of the transaction using

the following resources:

Consult with department sources.

Look up the voucher number using the

DEFINE GT2 command. Find out who created

the voucher:

If created by APS,

Use DOC ID to access documentation

in FileNet, or

Call APS for more informationIf created by a U. T. Austin employee,

contact the employee directly for information.

Documentation for the transaction?


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Look up voucher information in DEFINE

Use the DEFINE GT2 command

Type in voucher number from Statement of

Account in the MISC space at the top of the screen

If the voucher was created in APS, copy the DOC

ID and use it to find the document in FileNet.

To obtain more information about the voucher, type

a question mark (?) in the space next to the

transaction to get additional options.

Follow directions on the screen to exit.


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Access documentation In FileNet

Start Internet Explorer.

Go to https://dm.utsystem.edu/ic/

Type your User ID and Password - make sureUTSystem CS Library is selected.

Choose your departmentaltemplate (By Document

Search Template).

Choose

Enter (or paste) the DOC ID

you got from DEFINE.


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View documents in FileNet

In this example, the reconciler used annotation to document

evidence of reconciliation. This procedure is considered a best

practice when using FileNet as your on-line support repository

for all reconcilitation documents.


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If the informationon the Statementof Account foramountANDvendor AGREESwith thedocumentation,

go to next step.

If information does not agree,use the following resources:

Look up voucher # using the DEFINE

GT2 command andFind out who created the voucher and

contact them to find out why a change

was made, or

If the voucher was created by APS,

use the DOC ID to access thedocumentation in FileNet.

Do the amount AND vendor AGREE?


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Was the transaction approved?

An expenditure paid to a department head must be approved by the

Executive Officer to whom the department head reports.

An expenditure paid to a delegated signature authority must be approved

by their department head.

If the approval isappropriate,go to next step.

If there is not appropriate approval:

Bring it to the attention of your supervisor or

department head.

Revise the departments internal control

processes to mitigate the risk of such anoccurrence in the future.

Document all steps taken and file with the

reconciliation paperwork.

by the department head or delegated signature authority?


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Document discrepancies

If there are nodiscrepanciesor outstanding,unresolvedtransactions,go to nextstep.

If discrepancies exist:

DOCUMENT THEACTIONS TAKEN TORESOLVE.

FILE WITH THE

RECONCILIATIONPAPERWORK.


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Are steps 5a through 5d

complete?

If you answered yes to steps 5a through

5d, place a check mark (and the Doc ID ifthe documentation is in FileNet) next tothe transaction on the Statement ofAccount as evidence of reconciliation.

Go to next transaction on the Statementof Account and repeat steps 5a through5d.

Continue until all transactions have beenchecked off or discrepancies documented.


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If alldocumentsrelate toStatement of

Accountentries, go tonext step.

If documentation exists thatdoes not refer to any of theStatement of Account entries:

Use the DEFINE GT1 command to verifythat the transaction has been posted.

If it has not been posted, check the

status with APS and document the

response for the following months

reconciliation.

Is there supporting documentationwith no entry on the Statement ofAccount?


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Show evidence of reconciliation

The reconciler shouldinitial and date the

Statement(s) of Account.


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Prepare Summary of Reconciliation

Create Summary Sheet to include the

following information:

Account NumberMonth

Beginning Balance

Total Expenditures/Revenue

Ending Balance

Adjustments

Signature and Date Line for Reconciler

Signature and Date Line for

Department Head approval

(EXAMPLE ON NEXT SLIDE)


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Summary Sheet Example


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Obtain approval

After review, the

department headapproves and dates

each reconciliation on

the Summary Sheet.

The department head should review each Statement

of Account reconciliation.

Documents

Basic Steps Account Reconciliation